Deduction of tax at source

(1) Notwithstanding anything contained in any other provisions of this Act, every person, other than an individual and Hindu undivided family, responsible for making any payment for discharge of any liability for the transfer of the right to use any goods shall, at the time of credit to the account or at the time of payment of such amount in cash, or by cheque, or by draft or in any other manner whatsoever, whichever is earlier, deduct an amount equal to two per cent from such sums, Provided that no deduction shall be made where the consideration for right to use goods does not exceed four lakh rupees in a year. (2) Any tax deducted under sub-section (1) shall be paid to the account of the Government in such manner and within such time as may be prescribed. (3) The person making the deduction of tax under sub-section (1) and paying it to the account of the Government shall issue a certificate of tax deduction to the dealer within a period of fifteen days of such deduction in such manner and in such form as may be prescribed. (4) Any tax deducted under sub-section (1) and paid to the account of the Government shall, on production of the certificate of deduction under sub-section (3) by the transferee be deemed to be the tax paid by the dealer for the relevant period and shall be given credit in his assessment accordingly. (5) If any person fails to make deduction or after making a deduction fails to deposit to the account of the Government the amount so deducted, the Commissioner may, after giving to such person an opportunity of being heard, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible or deducted under this section besides the tax deductible but not so deduced and, if deducted, not so deposited into the Government Treasury. (6) Without prejudice to the provisions of sub-section (5), if any person fails to make deduction or after making deduction, fails to deposit the amount so deducted, be liable to pay simple interest at the rate of two per cent per month on the amount deductible under this section but not so deducted and, if deducted, not so deposited from the date on which such amount was deductible to the date on which such amount is actually deposited. (7) Where an amount has not been deposited after deduction, such amount together with interest and penalty shall be a charge upon all the assets of the person concerned and recoverable as arrears of land revenue.